Understanding car insurance policies and features

What’s no claims discount protection?

For every year that you drive without making a claim, you get a no claims discount (which some call a ‘no claims bonus’). Because it signifies that you’re a safe driver, it can gain you a discount on your insurance.

But as soon as you make a claim where your insurance provider pays out, you’ll lose some, or all of it.  

However, you can protect your no claims discount. You can do this once you’ve accrued 4 years of no claims (although some insurers may allow from 3 years) and it lets you keep your discount even if you do have to make a claim. But it's worth knowing, even with a protected no claims discount, your premium can go up anyway, because if you do make a claim this will be taken into account. If you need to make several claims then you may lose you no claims discount altogether. Most insurance providers will have tables to show how their protected no claims discount works.